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Roth IRA Feel Good Story – Episode 300

Adam Talks

In this, the 300th episode of Adam Talks, IRA Financial’s Adam Bergman Esq. discusses a feel good story about how a client turned tragedy into something special by using a Roth IRA.

Adam wanted to share a positive experience from a client to celebrate the 300th episode of Adam Talks. This Roth IRA feel good story shows how one can see a silver lining to a tragic event. While Adam mostly talks about how to benefit monetarily by saving with a self-directed retirement plan, it all comes down to the individual. We hope you are moved as much as we were with this story!

Feel Good Story

IRA Financial has a client, whose name we’ll withhold for privacy, who lost his son, a member of the armed forces. Because of the HEART Act, he received benefits because is son was lost while on active duty. The $400,000 was placed into a Roth IRA and was used to purchase start-up stock in an exciting company.

That initial investment was turned into a whopping $36 million! The company was going public and he owned one percent of it. Truly, a great way to do something in his son’s memory. This client wasn’t a super-rich investor taking advantage of the system. With all the talk about Peter Thiel and his $5 billion Roth IRA, there’s been a lot of backlash against the plan.

This client invested the proceeds from his son’s passing and created a legacy. The bonus, since it was done in a Roth, is that the earnings generated are all tax free. The money will be used to create great things in honor of this fallen hero. The Roth IRA is a great retirement plan for everyone, not just a select few.

The Power of the Roth IRA

As mentioned, the Roth IRA is getting a bad rep over the last several weeks. It’s being seen simply as a tax shelter for the rich. That couldn’t be further from the truth! Granted, some may have “abused the system.” The whole premise is to pay your fair share of taxes up-front, and get rewarded on the back end. The Roth was designed so the IRS could generate more tax revenue. Instead of an immediate tax break, pay your taxes now, and everything will be tax-free when you withdraw at retirement. What could go wrong?!

Guys like Peter Thiel and Warren Buffett have given the Roth a bad name. They are sheltering hundreds of millions (billions, even) in tax-free earnings. Opponents, like Senator Wyden, want to cap the Roth IRA.

However, why should someone, such as our client, who is not rich, suffer because of these wealthy Americans looking for a tax break? He has the opportunity to do a lot of good in his community. So what if he gets a break on those taxes.

As Adam talks about, it’s not about the uber-rich. It’s about the every-man, who has an opportunity to retire comfortable and even do positive things after a horrific tragedy.

Thanks for 300 Episodes!

We hope you enjoyed this Roth IRA feel good story. Adam is usually focused on educating America on the benefits of retirement planning. Of course, there are are more uplifting stories out there of how retirement investing has changed one’s life. Feel free to share with us!

We thank you for tuning in to Adam Talks all these years. This December will mark seven years of this podcast. Adam wouldn’t be doing these if you weren’t listening. Thanks so much!


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